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Stocks – The Safe Haven, Risk Off Play 5/25/23

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

That’s not a laughable concept anymore.

As expected, the 5 day cycle bottomed yesterday. It did so just a hair below the sport lines we pointed to in the pre market yesterday. So far, nothing terrible has happened yet. Today doesn’t look like the day either, unless you’re a bear, in which case all days are terrible. This market just won’t knuckle under to common sense. Sorry, it doesn’t work like that.

So we should expect a 5 day cycle up phase to benefit stocks until tomorrow. The ES, 24 hour S&P futures should head toward resistance around 4150. If it gets there, a conventional measured move would suggest a target of 4180-85. Getting there would suggest a subsequent drive to 4205. That’s where the market will hit the roof, so to speak.

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Meanwhile, the base breakout on the 10 year yield suggests a target of 3.98. That’s not a good thing. For anybody. Modestly Hedged Dealers, Record Short Hedge Funds Suggest Disaster Ahead

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For moron the markets, see:

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